Passage - General Questions

[Administrator]

Passage Discussion

Paragraph 1 Overview

At many research-oriented institutions, most faculty discoveries, particularly those with commercial
value, are owned by the institution. Institutions benefit from this ownership in at least two different
ways. First, valuable discoveries may encourage donors to sponsor additional research. Second, any
discoveries which can be licensed or patented may generate royalties for the institution. When reading
this passage, test takers should be wondering how the faculty react to this institutional policy. The
passage suggests that faculty are unlikely to start their own businesses but may be recruited by existing
research companies. A study warns that institutions which are not flexible enough to allow faculty some
freedom for business ventures may lose those faculty altogether. This leads to the main point of the
passage: institutions must consider various policies toward ownership of faculty research in order to
meet their own needs and the desires of faculty.

Paragraph 2 Overview

Here, the passage suggests implementing a fourfold classification of institutional policies. For each of
the four policies, readers should carefully note the established criteria for institutional ownership and
how these criteria differ from policy to policy. This can be very challenging for some test takers and
provides a wealth of possible questions for the test makers. Expect several of the questions to include
aspects of the four policies among the answer choices, as well as a fifth concept that may not be directly
supported by the passage. Readers who are unable to distinguish the four policies from one another (and
possibly from a fifth, unmentioned element) will not do well on this passage.

The three policies discussed in this paragraph are supramaximalist, maximalist, and resource-provider.
They are presented in order from the broadest ownership claim to the narrowest. Supramaximalist
institutions claim ownership of research that meets any of three criteria: if it is produced during the
course of employment at a university, if it is produced through university resources, or if it is the result
of any other faculty activity, regardless of the sponsor. Maximalist institutions use the first two criteria,
and resource-provider institutions depend solely on the “significant use” of university resources to
determine ownership. Note that all three policies can be applied to give institutions ownership of nearly
all faculty research.

Paragraph 3 Overview

The third paragraph notes that these three policies have an “uncertain legal and historical basis” (line
52). These uncertainties do not deter most universities and may encourage them to continue to use such
policies, since the extent of faculty’s rights cannot be clearly determined. Under common law, faculty
should own their inventions, but these institutions presume the opposite. Some institutions may grant
faculty rights such as royalty sharing, but “most major institutions behave in the ways that maximize
university ownership and profit participation” (lines 56-58).

Paragraph 4 Overview

Finally, the passage discusses a fourth approach which does not suffer from the issues mentioned in
the third paragraph. This approach is faculty-oriented and presumes that intellectual property belongs
fundamentally to the faculty. Except in cases of public health developments and “substantial university
involvement” (line 65), faculty are free to exploit their own discoveries. This approach is not contrary to
common law and legitimizes a far lesser degree of university ownership and profit participation than the
other three approaches mentioned previously. Readers should note that this is the only approach which
distinguishes by the type of product rather than just the manner of research. Readers should also be
aware that the author does not explicitly advocate this approach for all institutions.

Passage Summary

In order to meet their own needs and the desires of faculty, institutions must consider various policies
toward ownership of faculty research. Specifically, most institutions should seek to become facultyoriented
institutions, as this allows for researchers to own their own intellectual products without
universities infringing upon the legal rights of the faculty members (as is often the case with the three
other classifications of institutional policies).

Passage Structure

Paragraph 1: Introduces the need to consider the different intellectual property policies that
govern universities’ ownership rights to faculty inventions
Paragraph 2: Describes three institutional policies that give universities the majority that are
frequently used and that give universities the majority of ownership rights
Paragraph 3: Discusses the uncertain legal and historical status of the three policies examined in
the previous paragraph
Paragraph 4: Presents a fourth policy that gives ownership rights to the faculty, and that is free of
the issues mentioned in paragraph three

[saygracealways]

Hi Powerscore,

In the explanation posted, you wrote "Readers should also be aware that the author does not explicitly advocate this approach [faculty-oriented institutions] for all institutions." Then under Passage Summary you wrote, "Specifically, most institutions should seek to become faculty-oriented institutions, as this allows for researchers to own their own intellectual products without universities infringing upon the legal rights of the faculty members (as is often the case with the three other classifications of institutional policies)."

Could you please clarify the difference between the statement that the author is not explicitly advocating the FOI approach, and the statement that most institutions should seek to become FOI?

I am a bit confused because I don't know if the main point is that institutions should consider different institutional policies to determine which is the most appropriately flexible in order to deter their faculty from going off to institutions that grant them their commercial desires, or if the main point is that the FOI is a potential solution to the problem (of the previous three policies going against common law), and that most institutions should strive to become FOI.

Thanks!

[Robert Carroll]

Grace,

There is no contradiction between the two quotes - the author does not say that ALL institutions should adopt the fourth approach. But that's consistent with thinking that more institutions should consider it, even that it would generally be good for most of them.

In line 15 and just following, the author points out that flexibility beyond the present models would be a good idea for institutions. The last sentence of the paragraph makes explicit that the author thinks appropriate flexibility is a worthwhile goal. And, because the approaches typically currently used are not very flexible, that tells pretty strongly in favor of doing something more flexible. The fourth approach is the most flexible, and the last paragraph points out its positives in relation to the other approaches. It's fair to say that the author's main point is that the need for greater flexibility creates some incentive for institutions to start to adopt the fourth approach, at least in many cases.

Robert Carroll